Jewellery trading firm Man Sang International said it will own 49 per cent of a new three billion yuan jewellery trading centre being built in Zhuji, Zhenjiang province, which the city's mayor claims handled 70 per cent of world trading in pearls last year.
The remaining 51 per cent of China Pearls and Jewellery International City, which will have a gross floor area of 1.2 million square metres, will be owned by six Zhuji jewellery companies, according to Ricky Cheng Chung-hing, chairman of Hong Kong-listed Man Sang.
The project, 20 times bigger than the existing jewellery trade centre in Zhuji, is a key element in the local government's efforts to boost the city's status as a jewellery trading hub, mayor Zhang Zhong Can said.
Mr Zhang said turnover from pearl trading in Zhuji reached 2.2 billion yuan involving 680 tonnes last year, representing 80 per cent of the pearl trading volume in China.
The 250,000 square metre Phase 1 of the centre will open at the end of next year, said Mr Cheng, who is also a member of the Chinese People's Political Consultative Conference. Construction began in April.
Mr Cheng, who is also chairman of the joint venture, said Man Sang would pay for its share of the project's costs from internal resources.